Aided by stabilized raw material prices tyremaker CEAT Ltd reported a consolidated net profit of ’₹133 crore for the quarter ended in March 2023 as against ₹35 crore reported during the same quarter last year.

The company had earlier reported ₹25 crore profit during the December quarter. Further, the company has also approved a dividend payment of 120 per cent on equity shares for FY22-23.

CEAT Ltd’s revenue from operations grew by 10.9 per cent in the quarter ended March 2023 at ₹2,874 crore as against ₹2,591 crore during the same quarter last year. The company also saw an increase in revenue by 5.39 per cent from the December quarter of ₹2,727 crore. 

“We delivered strong growth of 21 per cent in FY23, contributed by both volume and price. Our growth during the year was largely driven by OEMs and speciality & passenger category tyres. On exports, we continue to face pressure as a result of the global economic headwinds, largely spurred by the ongoing war and the currency devaluation. However, we have begun to see some recovery in exports and the replacement market, especially in the commercial category. We are hopeful that the coming quarters will see further uptick in growth, as commodity prices remain stable, and global inflation slows down. We have also managed to bring down our debt sharply in Q4 and with a strong balance sheet, we are in a good position to provide the necessary capital for the future,” said Anant Goenka, Vice Chairman, of CEAT Limited.

Raw material

The company improved margins during the quarter as raw material prices remained stable. 

“It was a challenging year but it ended on a positive note as we did well with margins and debt. The company grew by 7-8 per cent quarter on quarter and raw materials stabilized from the third quarter and our ability to hold on to prices contributed to margin expansions,” said Kumar Subbiah, Chief Financial Officer of CEAT Limited. 

Related Topics
comment COMMENT NOW